CHF 400’000 from Your Pension Fund — How to Invest?
April 13, 2026
8 min read
Pension Fund · Withdrawal & Investing
CHF 400'000 from Your Pension Fund — How to Invest?
You made it. After 35-40 years of work, the pension fund capital sits in your account: CHF 400'000. Tax is paid. You're officially retired. And now you're sitting there with the largest single amount of money in your life — and no one really explained to you what to do with it. The bank calls and wants to sell you a "retiree mandate". Your brother-in-law recommends Bitcoin. A robo-advisor promises 0.4% fees. And in the back of your mind you hear: "You can't afford to lose any money — you're not earning any more". This guide clears up the three most common mistakes, shows you the mathematically sensible portfolio setup for your age, explains why Swiss tax rules give you a massive advantage here — and delivers concrete numbers for CHF 400'000 over 25-30 years of retirement.
CHF 16'000
Annual withdrawal at 4% (safe)
0%
Swiss capital gains tax (private individuals)
25-30 yrs
Investment horizon at 65 statistically
Contents
- The 3 biggest mistakes after PK withdrawal
- Understanding the Swiss tax advantage
- The right portfolio setup for 65+
- How much equity at 65, 70, 80?
- Worked example: CHF 400'000 over 30 years
- Self-invest, bank, robo, or asset manager?
- How arvy helps with PK withdrawals
- Checklist: The first 100 days after withdrawal
- Frequently asked questions
The 3 biggest mistakes after PK withdrawal
From over 20 years of observation of Swiss retirement reality, three recurring patterns emerge — each costing every retiree between CHF 50'000 and CHF 200'000. Those who know them, avoid them.
Mistake 1 — The capital sits on a savings account for years
"I'll wait until I see things more clearly." Three months become two years. With current Swiss savings rates of 0.5-1.5% and inflation of 1.5-2%, your capital loses real purchasing power. At 2% inflation and 0% real interest, CHF 400'000 loses around CHF 65'000 real purchasing power in 10 years. It's the most expensive "safe" step you can take.
Mistake 2 — Panic concentration in a single stock or theme
"My son thinks Nvidia keeps rising." Or: "The newsletter said crypto will 10x." Concentration risk on life's most important sum is catastrophic. Even quality stocks can lose 50% — a well-diversified strategy buffers that. Never more than 5-8% in a single position, never in an asset class you don't understand.
Mistake 3 — Acceptance of an expensive bank mandate without comparison
The house bank calls with a friendly voice: "Our retiree mandate manages your capital according to your risk tolerance." Actual costs often 1.5%+ per year, incl. sales fees on in-house funds. Over 20 years on CHF 400'000, a fee difference of 1% per year means around CHF 100'000 less end wealth. arvy comparison article: Bank vs. Robo vs. arvy →
Understanding the Swiss tax advantage
Before we get to portfolio strategy — you need to understand a fundamental peculiarity of the Swiss system that makes your strategy look completely different from Germany, UK, or USA:
| Tax on... | Switzerland (private) | Germany | USA |
|---|---|---|---|
| Capital gains (stock sale) | 0% — tax-free | 26.4% (flat) | 15-20% (long-term) |
| Dividends | Full income tax rate | 26.4% | 15-20% |
| Wealth tax on holdings | 0.1-0.7% cantonal | None | None |
The implication is huge: in Switzerland, growth stocks (low dividend, high capital gain) are often more tax-attractive than high-dividend stocks. Whoever receives CHF 20'000 as realised price gain: 0 tax. Whoever receives CHF 20'000 as dividend: at 30% marginal tax rate, CHF 6'000 tax.
This fundamentally changes your optimal portfolio setup. Many classical "retiree strategies" from US sources (high-yield dividend-focused) are suboptimal in Switzerland. Quality growth instead of dividend concentration is often better here.
Practical consequence: If your asset manager pushes you into dividend stocks with the reasoning "for regular income" — ask about the after-tax return. With higher wealth, it's often better to sell a small portion (tax-free capital gain) than to collect high dividends (taxable).
The right portfolio setup for 65+
The basic architecture follows simple logic: liquidity for short-term needs, securities for long-term growth.
Component 1: Liquidity buffer (CHF 50'000 - 80'000)
You need 2-3 years of expected withdrawals safely and available. This buffer protects you from sequence-of-returns risk: if the market drops 20-30% in the first 2-3 years after withdrawal, you don't want to be forced to sell at the bottom to finance living expenses.
Allocation:
- CHF 20'000-30'000 on call money/savings account (immediately available)
- CHF 30'000-50'000 on fixed deposit or money market fund (better return, short tie-up)
Component 2: Long-term securities portfolio (CHF 320'000 - 350'000)
The long-term investment capital. Here it's about real wealth preservation over 25-30 years — against inflation, with controlled volatility, globally diversified.
Typical setup for 65-year-old retirees:
- 50-65% equities (globally diversified, quality focus)
- 20-30% bonds (CHF-denominated, investment grade)
- 5-10% real estate (CH real estate stocks or REITs)
- 5-10% gold/cash (inflation hedge, liquidity)
How much equity at 65, 70, 80?
The old "hundred-minus-age" rule says: 35% equities at 65, 30% at 70, 20% at 80. This rule is outdated. It dates from a time with life expectancy 70-75 and higher bond yields. Today, a 65-year-old Swiss woman statistically lives another 22 years, a man 20 years.
Modern Swiss asset management practice works with higher equity quotas — provided the liquidity buffer protects against sequence-of-returns risk:
| Age | Recommended equity allocation | Reasoning |
|---|---|---|
| 65-70 | 50-65% | Investment horizon 20-25 years, inflation protection important |
| 70-75 | 45-55% | Stabilisation, but still growth component |
| 75-80 | 35-50% | Defensive shift begins |
| 80-85 | 25-40% | Capital preservation prioritised |
| 85+ | 15-30% | Inheritance component decides |
Important: with good health, intact AHV/PK income, and inheritance wish (children, grandchildren), the equity allocation can remain higher for longer — because the capital will partially be inherited, and the recipients have a longer horizon than you.
Worked example: CHF 400'000 over 30 years
We take a typical Swiss retiree: 65, single, residence Zürich, AHV pension CHF 24'000/year, monthly basic costs CHF 4'500. Expected living cost gap: approximately CHF 30'000 annually. We test three strategies.
Scenario A — "Conservative" (Savings account)
Everything on 0.5% savings account, withdrawal CHF 30'000/year
CHF 400'000 earning 0.5% interest, CHF 30'000 withdrawn annually. Inflation 2%.
Nominal: Capital lasts 14 years (until age 79)
Real (purchasing-power adjusted): Capital lasts ~12 years (until age 77)
With life expectancy of 85+, the last 8-13 years remain without PK capital. Only AHV covers CHF 24'000/year — standard of living drops significantly.
Scenario B — "Bank mandate 1.5% fee"
Managed mandate 55% equities / 35% bonds / 10% cash, withdrawal CHF 30'000
Gross return 5%, net after 1.5% fees = 3.5%. Withdrawal CHF 30'000.
Capital after 20 years (age 85): ~CHF 250'000 (real ~CHF 170'000)
Lasts until: approximately age 88-90
Works, but fees of CHF 6'000/year eat substantially into substance.
Scenario C — "Diversified with transparent costs"
Self-managed or with asset manager at 0.85% fee, withdrawal CHF 30'000
Gross return 5.5%, net after 0.85% fees = 4.65%. Withdrawal CHF 30'000.
Capital after 20 years (age 85): ~CHF 380'000 (real ~CHF 260'000)
Lasts until: Age 100+ (de facto unlimited)
Substance preserved or slightly growing — at nominal 5.5% return and only 3.5% withdrawal, real wealth grows by approximately 0.1-0.2% per year in real terms.
The difference between Scenario A and C with CHF 400'000 starting capital amounts to around CHF 300'000 (nominal) after 20 years. That's more than the original PK capital all over again.
Run your strategy through the numbers
In the arvy compound interest calculator, you can simulate your own withdrawal situation — with different returns and withdrawal rates.
Open the calculator →Self-invest, bank, robo, or asset manager?
The four ways to invest your PK capital:
| Option | Costs p.a. | Suitable for |
|---|---|---|
| Self DIY with ETFs | 0.15-0.40% | Experienced investors, time, emotional discipline |
| Robo-advisor (passive) | 0.40-0.70% | Those wanting a standard solution, little guidance |
| Classical bank mandate | 1.20-1.80% | Those valuing personal branch contact |
| Asset manager with quality focus (e.g. arvy) | 0.84-1.11% | Those wanting guidance + active stock picking |
An important insight: many retirees adopt a mixed setup. Some DIY in ETFs, some in an actively managed fund (for diversification at strategy level), some with an asset manager (for guidance through market turbulence). This diversification at provider level makes sense — especially in a life phase where emotional decisions are particularly dangerous.
For deeper analysis: arvy comparison: Bank vs. Robo vs. arvy.
How arvy helps with PK withdrawals
The arvy way
Quality investing for your retirement — two access points
arvy has two solutions for PK withdrawals, depending on desired depth and guidance:
Path 1 — The arvy Equity Fund (Valor 130614478)
- Directly purchasable through Swissquote, UBS, ZKB, Raiffeisen — no new account needed
- Concentrated global quality portfolio (30 top companies instead of 1'500 average ones)
- CHF-denominated, Liechtenstein UCITS
- Total all-in approximately 0.84-1.11% including TER, no hidden fees
Path 2 — arvy Asset Management (App + personal guidance)
- Complete asset management with individual strategy
- Multi-account setup for tax-optimal withdrawals
- Weekly newsletter "Weekly by arvy" for active learning
- CFA charterholders invest CHF 100'000+ in the same portfolio
- NZZ The Market regularly validates the strategy
Checklist: The first 100 days after withdrawal
Day 1-30: Stabilisation
- PK withdrawal on separate account (don't mix with normal private account)
- Understand tax obligation — when does the withdrawal tax effectively become due?
- Stocktaking: AHV amount, monthly expenses, other wealth
- DO NOT invest in the first 30 days — even if the bank pushes
Day 30-60: Define strategy
- Calculate liquidity buffer: 2-3 years expected withdrawal
- Honestly assess risk tolerance (forget "I was always bold" — what if the portfolio loses 30%?)
- Compare at least 3 provider options (DIY/Robo/arvy/Bank)
- Fully calculate fees — incl. TER, custody, performance fees
Day 60-100: Implementation
- Park liquidity buffer on call money/money market (immediately)
- Securities investment in tranches (3-6 months staggered = risk smoothing)
- Document withdrawal strategy in writing — date, amount, source
- Schedule semi-annual review meetings with partner or asset manager
The central insight: A PK withdrawal of CHF 400'000 is not a one-time event, but the beginning of a 25-30-year investment phase. Those who invest the capital with the same care they used to build it over their career — diversified, cost-aware, with a clear withdrawal strategy — secure not only a carefree retirement, but often also a substantial wealth balance for their heirs.
Frequently asked questions
What should I do with CHF 400'000 from my pension fund?
3 steps: liquidity buffer 2-3 years (CHF 50-80k), securities portfolio for the rest (50-65% equities by age), systematic withdrawal strategy (3-4% annually). Swiss private individuals benefit from tax-free capital gains — this fundamentally changes the logic.
How much equity allocation makes sense at 65?
50-65% equities is appropriate in Swiss retirement reality (life expectancy 85-90) — provided AHV/PK pension covers basic costs and a liquidity buffer absorbs sequence-of-returns risks. The "100-minus-age" rule is too defensive.
Should I give PK capital to the bank or invest myself?
Bank mandates 1.0-1.8% p.a. (over 20 years CHF 80-144k fees on CHF 400k). Robos 0.4-0.7%. Quality asset managers like arvy 0.84-1.11%. Self DIY 0.15-0.4%. Mix often sensible — especially in emotionally demanding retirement phase.
What taxes apply to CHF 400'000 invested?
Wealth tax 0.1-0.7% cantonal (CHF 400-2'800/year), income tax on dividends/interest (full), but NO capital gains tax for private individuals. Huge Swiss advantage vs. DE/UK/USA — makes growth stocks often more tax-attractive than dividend stocks.
How long does CHF 400'000 last in Switzerland?
At 4% withdrawal (CHF 16'000) and 5-6% return: practically unlimited. At 5% withdrawal (CHF 20'000): 30-35 years. At 6% withdrawal (CHF 24'000): 20-25 years. Combined with AHV CHF 24-30'000 covers solid Swiss living costs.
Should I buy Swiss stocks or global ETFs?
PK already has 30-40% Swiss equities — additional CH concentration through private investment risky. Globally diversified is better: CH 25-35%, USA 40-50%, Europe 15-20%, Asia 5-15%. CHF-denominated investments reduce currency risk.
What's the most common mistake with PK withdrawals?
Three: years sitting on savings account (inflation eats purchasing power), panic concentration in single position, expensive bank mandate without comparison. Over 20 years, each of these mistakes often costs CHF 100'000+.
What's the arvy solution for PK withdrawals?
Two paths: arvy Equity Fund (Valor 130614478) directly through Swiss bank/broker — concentrated global quality portfolio. Or arvy asset management with app, individual strategy, and personal guidance. Both FINMA-regulated, founders invest alongside.
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This article was written by Thierry Borgeat, CFA & Co-Founder of arvy, and reviewed by Patrick Rissi, CFA, and Florian Jauch, CFA. Updated: May 2026.
Disclaimer: This article is for general information only and does not constitute personal investment advice. All worked examples are based on assumptions (market returns, inflation, life expectancy) and are not a forecast. Actual returns vary; past performance is not an indicator of future results. Tax rates and cantonal practice can change. For exact calculation of your personal situation, we recommend consulting an independent investment or tax advisor. arvy is a FINMA-regulated asset manager (KAG licence under Art. 24). Legal Notice
Disclaimer: This article is for general information only and does not constitute personal investment advice. All worked examples are based on assumptions (market returns, inflation, life expectancy) and are not a forecast. Actual returns vary; past performance is not an indicator of future results. Tax rates and cantonal practice can change. For exact calculation of your personal situation, we recommend consulting an independent investment or tax advisor. arvy is a FINMA-regulated asset manager (KAG licence under Art. 24). Legal Notice
